INDIANA – If you are one of many Hoosiers who received unemployment compensation in 2021, you will need to declare it as income on both your federal and state tax returns.
Individual filers who received unemployment compensation will need a Form 1099-G from the Indiana Department of Workforce Development (DWD) to file their federal and state tax returns. The form will show the amount of unemployment compensation paid over the year. If you were issued a Form 1099-G for unemployment compensation by another state, you will need that information to file your federal and state returns.
You may be eligible for a deduction if you reported unemployment compensation on your federal income tax return. Refer to the 2021 Income Tax Instruction Booklet for more information and complete the worksheet on page 19 to determine eligibility. Most tax software programs will determine eligibility and the deductible amount for you. If you file a paper return, make sure to enclose your Form 1099G(s) when mailing your tax forms if you claim the deduction.
The Indiana Department of Revenue cannot answer questions regarding Form 1099-G from DWD. Your Form 1099-G from DWD can be found through Uplink on your DWD Correspondence page.
For more information about Form 1099-G for unemployment compensation, see the Department of Workforce Development’s website and FAQ at www.in.gov/dwd/indiana-unemployment/individuals/1099g/.
